Randy Dennis, president of Arkansas-based DD&F Consulting Group, said banks nationwide are adding to their mortgage units to fill a gap left open by the closure of many independent mortgage companies that failed under the new tighter lending laws after the burst of the housing bubble.

“It’s still a need out there for people to get home loans, and a lot of the banks are filling that need,” he said. “It’s a good source of revenue of banks.”

Since the smaller community banks didn’t participate in the risky mortgage lending that led to the recession, Dennis said he doesn’t think their lending practices would cause any trouble going forward.

National Bank of Commerce, the 12th largest bank in the Birmingham metro area with $277.1 million in local deposits, has more than tripled its mortgage lending division since changing its name from Red Mountain Bank and entering into three new markets in October.

Steven Fleming, senior vice president and manager of NBC Mortgage Co., said the division doubled the number of originators in the Birmingham market from two to four and added a support staff, hired two professionals for the Huntsville market and two in Baldwin County.

Fleming said the bank is currently interviewing for the Auburn market and has plans to hire additional employees throughout its footprint. In addition to the origination staff, they are bringing on operation support to transition from being a mortgage broker to a full mortgage banker, he said.

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